a question

[dotanth]

i am in the middle of filing chapter 7 in KY. I have went to my court hearing of creditors and none showed up. I am waiting on my discharge notification. I was involved in a recent flood and was awarded FEMA assistance and was wondering if any creditors can sieze any money I recieve from FEMA? Thanks.

[kenshirley]

Just a question here, did you know you had that money coming?
In most cases you would have had to file for that money.
And in your paperwork and/or at your 341 meeting they would have ask about any income that you could be expecting.

[dotanth]

At the time of the filing the flood hadnt occured. it occured right before the meeting of creditors and the area hadnt been declared a disaster yet. i applied for FEMA assistance after the meeting. and i just found out that i will be recieving assistance. I havent recieved a check yet or an official letter saying that i will get it but it has it on the FEMA site. It is an odd situation I am in. I lived rent free in a home my sister owns and she gave it to me but we never had it transfered to my name. FEMA considers it my home because I paid the taxes and is going to give money to rebuild. The aid will come in two seperate checks one for personal belongings and one for real property damages. I have no clue what is going to happen. I asked FEMA and they said no that it is considered disaster assistance and cant be touched but I just dont know.

[kenshirley]

You just may be OK then as it happened after the filing date.

[dotanth]

thanks for the advice. i called FEMA and asked if they knew if it could be taken by creditors and they said no because it is considered disaster aid. also it is a grant not a loan (denied SBA loan probably because of bk and finiancial state). also state and federal grants are not considered income...does that make sense? i have an appointment with my bk lawyer....when i called thier office they told me yes i have to tell him about it but wont know anything concrete till i see him. thanks again

[music12]

it happened after you filed and disaster assistance is not like inheritance which can become part of the bk estate during 6 months after filing.

furthermore, it's probably exempt anyway like social security benefits and disability and the like.

so there are two reasons why they can't take this money from you: it happened after you filed, and it would have been exempt even if it happened before you filed.

JMHO...

[dotanth]

thats what I was told at my hearing. If I get an inheritance before October then I need to report it to them. This isnt inheritance its disaster relief. I just wasnt sure how it all worked. Thanks for all the advice. Good luck to everyone.

[dotanth]

more info

Well after looking more into the subject I found this.

http://law.justia.com/us/cfr/title44/44-1.0.1.4.57.4.27.3.html

looking at section g. i think that answered my question. I see my lawyer tommorrow too and will point that out. Looks like its safe. Thanks again to everyone.